PERSONAL BUDGET PLAN moving out on your own

Thank you for purchasing this Personal Finance Project! There are a lot of resources included in this file, so I thought it might be helpful to include a teacher instruction page to help you organize how you may want to present the information to your students.

1) Display the following paragraph, or write the information on a white board. This gets the students pumped up for the assignment! You can change the salary to whatever you would like to be. I just found that a minimum salary around this range gives students the flexibility to budget in the various tasks assigned, but at the same time, not giving them too much freedom, as not many people have more than 10% of their income saved in their account at the end of a month.

2) Give students the Initial Guess Sheet, so they can go through and make some educated

guesses as to what they think various items would cost in a month (complete the post-project estimation sheet at the end to see how their guesses have compared now that they have completed a real life budget plan).

3) Give students the Budget Planning: Calculation Form. They can either write the answers directly on the printed sheet, or complete a spreadsheet of the totals in Excel or Word (recommended), as they will always be making changes!

4) Give students the Budget Planning: Written Form. They can either write the answers directly on the blank printed sheet, or use the blank outline as a template in Word (recommended), as they will always be making changes! Students can complete the written form in any order (other than the sections that require a mini-lesson).

5) As students work to complete the calculations and written form, you can include the designated mini-lessons as you desire. There is a mini lesson for groceries, loan furnishings, and renting, leasing, or buying a new car. You can find these in the Mini-Lessons folder.

6) Just for fun, as an optional activity, throw a wrench into the monthly budget planning by having your students complete the Road Blocks. The students do not have to alter their budget plans (unless you want them to) – they can simply complete the activity as a reminder of what CAN happen and how it might affect their planning! Editable versions have been included in case you want to create more.

7) Two optional handouts have been included (a) a money challenge chart, so students can see it is possible to save money, and (b) an information sheet on renting.

Congratulations! Career Enterprises has just hired you for your first full-time job at a starting salary of $33,600/year. Therefore, you are now ready to get a place of your

own. The fun is just beginning! You will need to make some critical decisions regarding your living expenses. These decisions will include: choosing an apartment, furnishing

your apartment, purchasing food and clothing, arranging transportation to and from work, purchasing and paying for services such as gas, electricity, cable and phone.

initial guess sheet How much do you think you need (after taxes) per month to live comfortably? How much do you think the average person pays for TV services/subscriptions per month?

How much do you think the average person pays for clothing per month? How much do you think the average person pays for food per month? How much do you think the average person pays for home insurance per month? How much do you think the average person pays for internet/wireless services per month?

How much do you think the average person pays for rent per month? How much do you think the average person pays for taxes per month? How much do you think the average person pays for their cell phone per month? How much do you think the average person pays for electricity per month? How much do you think the average person pays for toiletries per month? How much do you think the average person pays for transportation per month? On a scale of 1-5 (one being not really, 5 being very), how excited are you to move out and pay for ALL the bills and expenses on your own? Tell me why!

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budget planning: calculation form

MONTHLY GROSS INCOME ____________

MONTHLY NET INCOME _______________

Monthly Expenses:

TV Services/Subscriptions ____________

Clothes ____________

Entertainment ____________

Food ____________

Home Insurance ____________

Internet/Wireless Services ____________

Loan Repayment for Furnishings ____________

Other Expenses ____________

Rent ____________

Taxes ____________

Cell Phone ____________

Electricity ____________

Toiletries ____________

Pet ____________

Transportation ____________ Total Expenses ____________ Income minus Expenses (Savings) ____________ ------------------------------------------------------------------------------------------------------------------------------------------

You are required to hand in a report along with your monthly budget that explains how you calculated each number in your budget, and that it answers any questions that are asked in the chart. You need to EXPLAIN WHY you selected the options that you did.

The report should be created using Word (in a chart similar to the one on the next page). It is important that you clearly and accurately present your work.

Do not move head to any section titled “Separate Assignment”, as that will be completed as a separate mini-lesson activity.

budget Planning: WRITTEN Form

GROSS INCOME

Your annual gross income is $33,600. Be sure to calculate the monthly amount. Note: When calculating your final expenses, do not include the net income total.

TAXES (net income)

Assume that 30% of your gross income will deducted from your pay to cover income taxes, and other payroll deductions; include this amount in your monthly budget for taxes. You may have to do some research of the types of deductions in your area (include these in your write-up). Net income = take home pay

TV SERVICES/ SUBSCRIPTIONS

Your choices for TV services are as follows. Make your choice and include the required amount of money in your monthly budget.

Basic Cable $25 Basic Satellite $60.00 Netflix or Crave $9.99

Write a check to your TV services provider for the designated amount!

CLOTHING

Your overall clothing allowance to be somewhere around 5% of your monthly net income. If you are someone that really likes to ‘dress to the nines’, then bump up your allowance to 7% of your salary. *Remember to ‘sacrifice’ the extra 2% somewhere else.*

ENTERTAINMENT

Estimate your monthly entertainment expenses by itemizing and then totaling them. Here is an example: Two movie passes $20.00 Restaurant with friend $20.00 Hockey game $25.00 Total: $65.00 Note: The list above is an example only. Your monthly entertainment expenses should be different than what is shown above. *You should have a minimum of 4 items in this section!

FOOD

Include the monthly amount calculated after completing the food expense mini-lesson. Think about where you will be doing your shopping. SEPARATE ASSIGNMENT

Write a check to cover this monthly cost!

INSURANCE

Everyone must have house/apartment insurance to cover cost of fire and theft. Assume that this will cost approximately $150 per year. Calculate the monthly charges.

Write a check to an insurance provider for the designated amount!

INTERNET/wireless services

Your choices for internet are as follows. Make your choice and include the required amount of money in your monthly budget. Assume that you already have a lap top/computer.

5 GB of data = $15 10 GB of data = $20 Unlimited Data = $25

Write a check to your internet provider for the designated amount!

FURNISHINGS

Include the monthly amount calculated in the loan mini- lesson. You are required to have at least two items for this section. Use newspaper flyers, and/or online advertisements (cut/print out). SEPARATE ASSIGNMENT

OTHER EXPENSES

In your written report, list five other expenses that you may incur that are not included elsewhere in your budget. You do not need to find the price of these items. Include $75.00 in your budget to cover the cost of these possible other expenses.

RENT Using a newspaper or online source, find a place to rent. Be sure that the monthly charge for the house/apartment is clearly indicated. You may choose to live alone or with a roommate, but make sure you make the necessary changes to your budget depending on your living situation.

Write a check to your landlord for the designated amount!

CELL PHONE

Choose from one of the following three options:

If you only require a basic phone plan because you don’t use the phone that often and you rarely make long-distance calls, budget $25 per month for telephone.

If you require an intermediate phone plan because you talk on the phone regularly and sometimes make long-distance calls, budget $50 per month for telephone.

If you make lots of long-distance calls, want a data plan, and extra phone features, budget $100 per month for telephone.

Write a check to your telephone provider for the designated amount!

electricity

If you are renting a one bedroom apartment or condo, budget $50, $75 for a two bedroom, and $100 for a place with three plus bedrooms. Write a check to your electricity provider for the designated amount!

PET

Assuming the place you rent accepts pets, identify the cost of having a pet for one month. This includes food, toys, and other necessities (depending on the type of pet). For example, if you have cat you will need litter. Note: The cost of the pet has already been covered in a previous month.

Print out the rent ad

advertisement using the

“print screen” function to

ensure all details are visible.

TOILETRIES/MEDICATION

In your written report, list five items that could fit into this category of expenses. You do not need to find the price of each item. In your monthly budget, include $50.00 to cover the cost of toiletries and medication.

TRANSPORTATION

Assume that you do not need a car for work. You can walk, bike, or take the bus. However, you may want a car for convenience and pleasure. Monthly Cost of Buying a New Car: _______________ (calculated in class) Monthly Cost of Leasing a New Car: _______________ (calculated in class) Monthly Cost of Buying a Used Car for $10,000: _______________ (calculated in class) You can choose to have a new car or a used car, with a monthly cost as per our class discussion. If you choose not to have a car, then you must budget $100 per month to cover the cost of a bus pass, cab rides, etc. In your written report, be sure to explain the reason for the transportation choice that you made. This will be completed a later date. SEPARATE ASSIGNMENT

TOTAL EXPENSES

Use an Excel function to add up all of your expenses (gross income minus all of your expenses).

SAVINGS

Use an Excel formula to calculate this number. This number cannot be a negative number. If it is, then you must reduce some of your expenses. Any positive number is savings that can be used in the future (aim for 3-5% of your net income).

budget planning: WRITTEN form

gross Income

TAXES (Net income)

TV SERVICES/

SUBSCRIPTIONS

CLOTHING

ENTERTAINMENT

FOOD

INSURANCE

INTERNET/wireless services

FURNISHINGS

OTHER EXPENSES

RENT

cell phone

electricity

PET

TOILETRIES/MEDICATION

TRANSPORTATION

TOTAL EXPENSES

SAVINGS

budget planning: RUBRIC

CRITERIA

5

Exceptional

4

Acceptable

3-2

Marginal

1 or 0

Unacceptable

Budget

spreadsheet

X2

You accurately completed all applicable lines and categories on the budget spreadsheet using data and assumptions given in the assignment. No apparent errors.

You completed all applicable line, and categories on the budget spreadsheet using data and assumptions given in the assignment. One or two minor errors.

You completed some, but not all applicable lines and categories on the budget spreadsheet using data and assumptions given in the assignment. A few major errors and omissions.

You selectively filled in the spreadsheet, but there are many errors and omissions.

Written Report

X2

You provided a detailed explanation of how you determined individual budget lines and amounts.

You introduced the budget and commented on the budget process. You also explained how you determined individual budget lines, and amounts.

You introduced the budget and partially explained how you determined individual budget lines.

You insufficiently explained how you determined individual budget lines and amounts.

Overall presentation

X2

Your discussion of the budget process and individual budget lines is set forth in a clear, thoughtful, and very organized manner. It is well-written, insightful and includes thorough details.

Your discussion of the budget process and individual budget lines is set forth in a thoughtful manner. It is well-written, includes sufficient details and is organized.

Your discussion of the budget process and individual budget lines is carelessly written, gives insufficient detail, and lacks organization.

Your discussion of the budget process and individual budget lines is poorly written (writing is unfocused, rambling, or contains serious errors); lacks detail, and is poorly organized.

Required Information

X2

Monthly budget (Excel), written reports, checks, loan amortization results, furnishings, and item ads are ALL included and completed according to expectations.

One of the required documents was not included. Everything else was completed properly.

Two to four of the required documents were not included.

Five or more of the required documents were not included.

There will also be 3 separate homework checks throughout this unit. You will be advised as to what you will need to have completed at the required date in order to receive credit for that portion (3 marks each).

Homework Check #1: __________________

Homework Check #2: __________________

Homework Check #3: __________________

TOTAL = _______49 Marks

Monthly Budget

The following monthly budget must be set up on a computer spreadsheet (Excel). Refer to the

instructions in Part B, C, and D when calculating the amount to be included for each budget line.

Whenever possible, use formulas and functions when creating your monthly budget.

MONTHLY BUDGET

MONTHLY GROSS INCOME $3166.67

MONTHLY NET INCOME ($2216.67)

Monthly Expenses:

TV Services/Subscriptions $50

Clothes $98

Entertainment $100

Food $175

Home Insurance $12.50

Internet/Wireless $40

Loan Repayment for Furnishings $100

Other Expenses $75

Rent $350

Taxes $950

Cell Phone $50

Electricity $50

Toiletries $50

Pet $20

Transportation $200

Total Expenses $2190.50

Income minus Expenses (Savings) $26.17 ------------------------------------------------------------------------------------------------------------------------------------------

SAMPLE RESPONSE

While your monthly gross

income is $3116.67, your

net income (actual

amount in your account) is

$2216.67.

Taxes = 3166.67 x .30

POST-PROJECT ESTIMATION SHEET

How much would you need (after taxes) per month to live comfortably?

How much would the average person pay for TV services/subscriptions per month?

How much would the average person pay for clothing per month?

How much would the average person pay for food per month?

How much would the average person pay for insurance per month?

How much would the average person pay for internet/wireless services per month?

How much would the average person pay for rent per month?

How much would the average person pay for taxes per month?

How much would the average person pay for their cell phone per month? How much would the average person pay for electricity per month? How much would the average person pay for toiletries per month?

How much would the average person pay for transportation per month? On a scale of 1-5 (one being not really, 5 being very), how excited are you to move out and pay for ALL the bills and expenses on your own, now that you know how much it will cost?

Now, end this project by thanking someone for helping you out with these monthly expenses!